Bauxite Terminal Construction ProjectBauxite terminal company is an international company that has been given a contract to establish a bauxite plant in town of freedonia in West Africa. The project is expected to cost the government and international sponsors a total of 450 million pounds and take not less than two years to complete. The project aims at construction of river port to handle bauxite production and enhance trade in the area. The project considered all the aspects related to the progress of the project including transportation, mining, metallurgy, engineering, availability of work force and electricity.
The firm was based on sequential mining of three bauxite deposits found in the town by using excavator mining, open-pit, and truck with three ore that is mined trucked for processing at a central smelting plant located 50 kilometers downstream. The bauxite terminal company will have to support mine life of two years at an average cash flow operating cost of $120 on each tone of sintered bauxite. The company had a target production of more than 500,000 tones of high quality sintered bauxite per year.
Operations of the company are 50 kilometers from town of freedonia. Mineral reserves have been established in the area totaling to 1000, 000 million tones of which around 56%are proven thus producing mine lie of 2.0 years for the project. The resources were drilled with the company’s machinery thus, no other mineral reserves were established since they could have infringed on the budget of the company. The company had to strategize to come up with low mining operation costs at $ 1.23 per tonne of the total raw material mined average over the mine life that reflects to $10 per tone of the final product.
There is direct employment of skilled and semi-skilled workers who will do various works at the processing and mining plant. It will be important for the company to establish efficient, low, and simple cost of beneficiation for smelting, sizing, and washing of bauxite ore to a low silica concentrate at a cost of $ 14 per tonne because of inflation rate in the country. State of technology of the company that includes; use of shaft kilns that produce enhanced bulk sintered bauxite with low particulate emissions while absorbing less than 50 % of the energy or power consumed for equivalent output by the rotary kiln technology.
The total cost of the project is 450 million pounds for the whole project. Sensitivity analysis of the project suggests that the project that is going to be established is robust and it can withstand any adjustments in most critical parameters of changing global economy and market prices such as fuel prices, operation and capital costs, and product prices.
The plant has conducted enough survey and noticed that there are enough raw materials or mineral resources of high quality bauxite, which has not been included in the economic and political evaluation of political instability in the country. Therefore, the project is not going to be influenced by political forces because the world is keenly watching the progress of the project to ensure that work is complete within stipulated time.